SCA CIRCULAR NO. 3/99

COMPANIES SPECIALIZED IN LOADING, UNLOADING AND RE-LOADING OPERATIONS, STS CAN GET INVOLVED TO ENCOURAGE THE PASSAGE OF SUPERTANKERS THAT CURRENTLY DO NOT USE THE SUEZ CANAL.
THE COMPANY CAN LIGHTEN PART OF THE SUPERTANKER'S CARGO (MOTHER SHIP) ONTO A SMALLER TANKER "SUEZ MAX" (DAUGHTER) AT THE GULF OF SUEZ, WHEREBY, THE TWO SHIPS TRANSIT THE SUEZ CANAL BEFORE THE MOTHER SUPERTANKER GETS HER CARGO BACK AT PORT SAID.

THE TWO SHIPS WILL BE FINANCIALLY TREATED AS FOLLOWS:

1) DUES ARE CALCULATED AT THE RATE OF USD 0.10/BARREL, AND COLLECTED FOR THE TOTAL VOLUME OF CARGO CARRIED BY THE TWO SHIPS,
2) THE TWO SHIPS ARE DULY EXEMPTED FROM THE CHARGE OF ESCORTING TUGBOATS WHILE TRANSITING THE CANAL "SUEZ CANAL RULES OF NAVIGATION".
3) ONCE THE CARGO HAS BEEN RELOADED BACK ONTO THE SUPERTANKER, THE SMALLER TANKER IS EXEMPTED FROM THE TRANSIT DUES OF THE RETURN, BALLAST TRIP, PROVIDED THAT THE SHIP GETS BACK DIRECTLY AS THE JOB IS COMPLETED AND HAS NOT BEEN INVOLVED IN ANY COMMERCIAL BUSINESS OR ACTIVITY, EXCEPT FOR SIMILAR OPERATIONS PERFORMED IN THE OPPOSITE DIRECTION.